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Equity Method Investments
 12 Months Ended
Dec. 31, 2022
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments

Note 6 – Equity Method Investments

In November 2018, CPFH LLC, of which the Company holds a 25% share, was formed to purchase certain real estate assets among partners in a joint venture. In March 2020, HGC Origination I LLC and HGC Funding I LLC were formed as joint ventures with a partner for purposes of conducting business relating to the sourcing, origination and funding of loans to debt purchasing clients. In April 2022, KNFH LLC, of which the Company holds a 25% share, was formed to purchase certain real estate assets and machinery and equipment among partners in a joint venture. In December 2022, DHC8 LLC, of which the Company holds a 13.33% share was formed to provide funding and receive principal and interest payments as a result of the initial investment. CPFH LLC, KNFH LLC, and DHC8 LLC are joint ventures formed in connection with the Company’s Industrial Assets Division, whereas HGC Origination I LLC and HGC Funding I LLC were formed in connection with its Financial Assets Division.

The table below details the Company’s joint venture revenues and earnings (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Revenues:

 

 

 

 

 

 

CPFH LLC

 

$

31,072

 

 

$

473

 

KNFH LLC

 

 

22,183

 

 

 

—

 

DHC8 LLC

 

 

—

 

 

 

—

 

HGC Funding I LLC and Origination I LLC

 

 

2,665

 

 

 

238

 

Total revenues

 

$

55,920

 

 

$

711

 

 

 

 

 

 

 

 

Operating (loss) income:

 

 

 

 

 

 

CPFH LLC

 

$

15,357

 

 

$

(548

)

KNFH LLC

 

 

9,930

 

 

 

—

 

DHC8 LLC

 

 

—

 

 

 

—

 

HGC Funding I LLC and Origination I LLC

 

 

2,645

 

 

 

212

 

Total operating (loss) income

 

$

27,932

 

 

$

(336

)

The table below details the summarized components of assets and liabilities of the Company’s joint ventures (in thousands):

 

 

 

December 31,

 

 

December 31,

 

 

 

2022

 

 

2021

 

Assets:

 

 

 

 

 

 

CPFH LLC

 

 

—

 

 

 

11,789

 

KNFH LLC

 

 

—

 

 

 

—

 

DHC8 LLC

 

 

8,561

 

 

 

—

 

HGC Funding I LLC and Origination I LLC

 

 

53,385

 

 

 

10,476

 

Total assets

 

$

61,946

 

 

$

22,265

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

CPFH LLC

 

 

—

 

 

 

6,099

 

KNFH LLC

 

 

47

 

 

 

—

 

DHC8 LLC

 

 

1,028

 

 

 

—

 

HGC Funding I LLC and Origination I LLC

 

 

1,504

 

 

 

—

 

Total liabilities

 

$

2,579

 

 

$

6,099